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Import Prices Surge Most Since April 2011

Tyler Durden's picture





 

Today's import price update from the BLS was another warning red flag of margin compression for local manufacturers, as import prices, across both fuel and nonfuel imports, soared by 1.3%, well above consensus of a 0.8% rise, compared to the revised February decline of -0.1%. There is likely much more pain in store as the 3.8% increase in fuel import prices in March was a fraction of the 9.7% and 7.6% recorded in March and April in 2011 when crude and gasoline were trading at current levels. In other words, foreign makers can still absorb costs domestically before passing it on to the US. We expect this will change quickly, and the April fuel import prices will soar far more than even in March. As for the bottom line that the Fed does track, nonfuel imports, it rose 0.5%, also the most since April 2011. By all appearances, this means that the market will have to seriously tumble for the Fed to proceed with more easing at this moment, although ease it will. It is only a matter of time: about $30 trillion in excess debt demand it, and $2 trillion in Treasury debt/year needs to be monetized somehow.

From the report:

U.S. import prices advanced 1.3 percent in March, the U.S. Bureau of Labor Statistics reported today, after edging down 0.1 percent the previous month. Higher fuel and nonfuel prices contributed to the advance. Prices for U.S. exports rose 0.8 percent in March, following increases of 0.4 percent in February and 0.2 percent in January.

 

Imports

 

All Imports: Import prices advanced 1.3 percent in March, the first increase for the index since rising 0.7 percent in November and the largest monthly rise since a 2.6 percent advance in April 2011. Import prices increased 3.4 percent over the past year, the smallest 12-month advance for the index since a similar 3.4 percent rise between November 2008 and November 2009.

 

Fuel Imports: A 3.8 percent rise in import fuel prices led the March increase in overall import prices.  The increase in fuel prices was the first one-month advance since a 3.4 percent rise in November. In March, a 4.3 percent increase in petroleum prices, the largest component of imported fuels more than offset a 14.2 percent drop in natural gas prices. Prices for import fuel rose 7.4 percent for the year ended in March, driven by a 9.6 percent advance in petroleum prices. In contrast, natural gas prices fell 37.8 percent over the past 12 months.    

 

All Imports Excluding Fuel: The price index for nonfuel imports increased 0.5 percent in March, the largest one-month advance since a 0.8 percent rise in April 2011. A 1.7 percent increase in nonfuel industrial supplies and materials prices was the largest contributor to the overall advance, while prices for foods, feeds, and beverages; capital goods; and automotive vehicles rose as well. Nonfuel import prices increased 2.0 percent for the March 2011-12 period, the smallest year-over-year advance since a 1.9 percent rise for the year ended in February 2010.

And visually:

 


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Wed, 04/11/2012 - 08:46 | Link to Comment The Swedish Chef
The Swedish Chef's picture

Transitory, it´s all transitory...

Wed, 04/11/2012 - 09:05 | Link to Comment SilverTree
SilverTree's picture

On a long enough timeline everything is, you guessed it...Transitory

Wed, 04/11/2012 - 14:27 | Link to Comment PayneNita
PayneNita's picture

my classmate's sister makes $62 hourly on the laptop. She has been unemployed for 5 months but last month her pay check was $13843 just working on the laptop for a few hours. Read more on this web site ....  http://bit.ly/FPPP3j

Wed, 04/11/2012 - 08:49 | Link to Comment DavidJ
DavidJ's picture

yikes.  This ain't good for those that eat iphads.

Wed, 04/11/2012 - 08:49 | Link to Comment digitlman
digitlman's picture

Fuck You, Ben Bernanke.

Wed, 04/11/2012 - 09:04 | Link to Comment youngman
youngman's picture

It takes 6 months to work thru the economy I think....from oil to the plastic bits to the energy to form the plastic..to the packaging to the delivering of the product..higher costs in all those manufacturing events...add in higer fees..taxes..regulations...and well....up up and away..

Wed, 04/11/2012 - 09:07 | Link to Comment Sudden Debt
Sudden Debt's picture

There's a pretty logical explenation for all of this....

SPECULATORS!!! EVIL I TELL YA!!!

oh yeah....

AND BUSH DID IT!!!!

 

Wed, 04/11/2012 - 13:08 | Link to Comment spekulatn
Wed, 04/11/2012 - 09:11 | Link to Comment KandiRaverHipster
KandiRaverHipster's picture

seriously do you ever trust or take seriously anything the BLS announces?

Wed, 04/11/2012 - 09:17 | Link to Comment Sudden Debt
Sudden Debt's picture

Have you ever tried to explain to average Joe that not everything in the Newspaper tells the truth?

 

Wed, 04/11/2012 - 09:42 | Link to Comment Vince Clortho
Vince Clortho's picture

How bout the tube?  It's got to be true if they are saying it on the News.

The Ministry of Truth would be all over them if they were not telling it like it is.

Wed, 04/11/2012 - 09:43 | Link to Comment Ricky Bobby
Ricky Bobby's picture

It's all good once you strip out food, fuel, college, health care. Oops .. I guess we need to strip out all imports. OK fixed - See no inflation.

Wed, 04/11/2012 - 09:52 | Link to Comment Tsar Pointless
Tsar Pointless's picture

Yep. Chairman Ben sees no inflation.

It can't be because he never abandons his Ivory Tower to go out amongst the proles.

I'm sure he is regularly in his local grocery store and has to fill up his vehicle weekly.

/Pointless sarcasm off.

Wed, 04/11/2012 - 12:50 | Link to Comment zerozulu
zerozulu's picture

What kind of PhD you need to understand that if you don't work, don't built, don't make, cannot survive?

Wed, 04/11/2012 - 10:57 | Link to Comment RiverRoad
RiverRoad's picture

Count on the Fed to do everything they can to "ease" their puppet Obamma right back into his seat in the Oval Office and at just the right time.

Wed, 04/11/2012 - 18:23 | Link to Comment engineertheeconomy
engineertheeconomy's picture

hyperinflation is coming soon to a neighborhood near you

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